The Buyer’s Market is Long Gone!

Monday, October 26th, 2009 | Money, Real Estate, The Economy | No Comments

As a Realtor(R), I get a kick out of the way the media is reporting the housing market. The reports are very mixed with foreclosures and housing starts. But they are not out trying to buy a house or they would be reporting a whole different story.

Just a few months ago, if a Realtor(R) was able to have a buyer in their car looking for a home, life was easy. Look at a couple of houses, take a coffee break, look at a couple more, pick the best one and put in an offer 10% below list price and you had a contract. Then over night BOOM!

I wrote and podcasted that you may have missed the market. Boy was that an understatement! I am doing things routinely now that I would have thought unethical just a little while ago. Our buyers need to be ready for a real ordeal. Last week a buyer put in an offer for a property at about $100,000. They went $5,000 over list only because that was all they could qualify for. Remember that if they can close on a house before December 1 there would be an $8,000 check to sweeten their deal .Well that was last week and almost 10 days later, NO ANSWER from the bank! There were 10 contracts on that property and no one knows if any of them will get the house. But nine of them will get closer to the drop head date and lose $8,000.

Back in the day before banks ruled the real estate system, 24-hour response time on a contract was standard. So one offer at a time would be about the maximum written. But now one offer sitting on a banker’s desk can cost my buyer big cash. Even if there wasn’t a tax credit, one contract in a week or two when it might take 15 or 20 offers to get a signed contract hurts the buyer. Interest rates might easily raise out of the range of our buyers so affordable housing is at risk with the delayed response from our friendly bankers. So that is what I see about the foreclosure side of the market.

Now that market is sweet compared to the short sale market. I have contracts were buyers are trying to buy a home putting in an offer from as long ago as JUNE!!!!!! There is one bright spot. You usually don’t hear a whole lot of complements for a bank. I have a praise for one bank that I have seen the better service than I expected, that bank is GMAC. They responded quickly waited while we negotiated with the 2nd mortgage lender and approved a sale at market price.

I guess my thoughts drifted with this post. The banks own the market and even though homes are very affordable, be prepared to look hard and put in lots of offers.

This Year’s Monthly Active Listings and Sales Price in Peoria

Saturday, October 3rd, 2009 | Investment, Real Estate, Statistics, The Economy | No Comments

This Year’s Monthly Active Listings and Median Sales Price in Peoria Arizona.

Active Listings             Median Price

Jan.          1584                     $180,000

Feb.          1586                     $184,669

March       1580                     $165,625

April         1422                     $172,750

May          1231                     $169,314

June         1119                     $170,000

July          1015                     $166,000

August     1030                      $166,000

Sept.       1018                      $165,000

Does it look like in March prices hit bottom and have stabilized? The inventory has been steadily declining by more than 30%. What does it mean? In today’s market, no one knows! Will things change if the tax credit isn’t extended? Are the banks intentionally holding back inventory to stop price decline? One thing that is certain, its not the best time to sell? Well, if you are moving up it might be a great time to acquire your trophy home. If your job is secure. This looks like a good year for gamblers and a very uncomfortable year for the timid.

Thank you Cromford Report.

What’s Happening in the Peoria Market Today

Thursday, October 1st, 2009 | Money, Real Estate, Statistics | No Comments

Here are a few statistics on what is happening in the Peoria Arizona market.

Normal Sales     Pre-Forclosed     Bank Owned

Peoria Active Listings           41.67%                   44.8%                 13.53%

Monthly Sales                      27.91%                  25.58%                46.51%

$/SF Listings                      $153.23                    $87.29                 $89.50

$/SF Sales                         $103.08                  $88.29                   $75.37

Days on Market                   174                       127                         115

The sales to inventory shows there is 3.6 months of inventory. The market is considered a buyer’s market when the inventory is at least a 6 month inventory.  These statistics are provided by “The Cromford Report.” They are the most up to the minute information providers I have been able to find.

Tags: Peoria Arizona real estate market, Peoria real estate, west valley real estate